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<br />`J <br /> <br />Page 3 <br />The property is believed to contain 4 aquifers, the A groove, the B groove, a <br />perched aquifer and the Dissolution surface. The table belox summarizes the <br />changes made to the water monitoring wells: <br />Hole Original 1990 <br />Number 88 Plan Notice of Intent Actual <br />IRI-1 Perched Perched Perched <br />IRI-4 Dissolution Perched A groove <br />IRI-5 B groove Approval Pending Perched (1) <br />IRI-6 Dual-perched / A A groove B groove <br />IRI-7 Not planned B groove Dissolution <br />IRI-8 Not planned Dissolution Perched (2) <br />IRI-9 B groove No sundry Not used (3) <br />IRI-EX2 Dissolution No sundry Dissolution <br />Y. Field B groove No sundry Not drilled (4) <br />TH7511A A groove No sundry Not used (3) <br />TH7511B Dissolution No sundry Not used (3) <br />26-89-1 Not planned No sundry B groove <br />26-89-2 Not planned No sundry A groove <br />26-89-3 Not planned No sundry Perched <br />26-90-2 Not planned Dissolution Dissolution <br />26-90-3 Not planned B groove B groove <br />26-90-4 Not planned A groove A groove <br />Skyline Not planned No sundry Plugged <br />(1) Not been recompleted. Axaiting sundry approval. <br />(2) Verbal approval for change to Perched due to junk in the hole. <br />(31 Recompletions xere not performed due to the apparent substitution of <br />26-90-2 for TH7511B, 26-90-3 for ZRI-9, and 26-90-4 for TH7511A. <br />These substitutions xere not authorized by the BLM. <br />(4) Yell Field hole planned to monitor the B groove but never drilled. <br />Mine Plan: <br />At this time the drilling for the mine plan consists of two xells, 26-90-5 <br />xhich is a vertical xell I:hat "kicks off" horizontally to connect with <br />vertical hole 88-1. <br />On May 11, 1990, BLM met with NaTec in Rifle concerning the proposal to create <br />a 600 to 1000 foot cavity.. BLM told NaTec to submit their proposal in writing <br />providing drawings and descriptions. This is confirmed by the company in <br />their September 17, 1990 correspondence faxed to the District Office. <br />On July 18, 1990, BLM met xith NaTec at the mine site. Again their proposal <br />to extend the cavity length xas discussed. At this time, the company proposed <br />drilling past 88-1 and also using as undercut device to improve sodium <br />recovery. Anew proposal to use tubing in the solution cavity to control <br />mining xas also discussed. NaTec xas told to submit these ideas in xritiag as <br />a formal proposal to alter the mine plan. The proposed change in mine plan <br />xas never received. <br />